Indian rupee ended almost flat against dollar on Tuesday, amid worries that accelerating U.S. inflation could lead to interest rate hikes sooner than expected. Traders were also worried as Crisil said that India’s gross domestic product (GDP) growth can drop to 8.2 per cent in the current financial year (2021-22) if second wave of coronavirus pandemic peaks by June-end. Adding more pessimism, World Health Organziation stated that the coronavirus variant first identified in India last year was being classified as a variant of global concern, with some preliminary studies showing that it spreads more easily. On the global front; greenback held near multi-month lows on growing concerns about price pressures.
Finally, the rupee ended 73.34, stronger by 1 paise from its previous close of 73.35 on Monday. The currency touched a high and low of 73.53 and 73.31 respectively.